Another bidder enters Refco lists
The race to take over the futures business of collapsed broker Refco hotted up as another group emerged as a possible bidder.
TradeLink, a Chicago-based futures commission merchant, its co-founder, Walt Weissman, and Nickolas Neubauer, a member of the board of directors of the Chicago Board of Trade, are forming an investor group to consider buying some or all of Refco.
Neubauer said that his group is thinking about an independent offer or a joint bid with other suitors. Confirmed bidders are Interactive Brokers and the Dubai Investment Group, with other potential bidders. JC Flowers bowed out of the race on Tuesday. Interactive Brokers has signed a confidentiality agreement with Refco that will allow it to access Refco’s data to conduct due diligence for its offer.
Refco, which had a market value of $3.6bn, descended into bankruptcy when customers began withdrawing their assets as chief executive Phillip Bennett was charged with securities fraud on 12 October.
Refco’s futures brokerage business has not filed for bankruptcy, and is continuing operations. This is the division that bidders are looking to acquire. Meanwhile, the Chicago Mercantile Exchange has called on the New York-based firm to find a buyer as soon as possible to restore investor confidence.